Ask the Expert
The Reverse Mortgage Times is proud to announce that Brian Cooper, a nationally recognized reverse mortgage expert, has agreed to be the moderator of “Ask the Expert”. Brian has been featured on numerous radio and television talk shows as a reverse mortgage expert/advisor.
BRIAN COOPER
THE FORUM
Henry S.
Question: I’m 65 years old but my wife is 60. Does this matter?
Answer from Brian Cooper: The answer depends on who is on the title to the house. If your wife is not on title, then you can still apply for a Reverse Mortgage. If your wife is on the title, there are still safe and practical strategies that can be employed that will enable you to obtain a Reverse Mortgage. In cases where one homeowner is under 62, it is best to discuss the situation with your reverse mortgage specialist.
Cheryl H. (Seattle, WA)
Question: I thought Reverse Mortgages are expensive.
Answer from Brian Cooper: Even though a Reverse Mortgage has up-front costs that are folded into the loan, there are NEVER any monthly payments. Compared to other traditional types of home loans that have monthly payments, a Reverse Mortgage is much more economical- especially for seniors.
Joshua W.
Question: Why wouldn’t I just get a home equity loan?
Answer from Brian Cooper: With a traditional second mortgage, or a home equity line of credit, you must have sufficient income to qualify for the loan, and you are required to make monthly mortgage payments. A Reverse Mortgage works very differently. The Reverse Mortgage lender pays you, and it is available regardless of your current income. You don’t make payments, because the loan is not due as long as the house is your principal residence. Like all homeowners, you are still required to pay your real estate taxes and other conventional payments like utilities, but with an FHA-insured HUD Reverse Mortgage, you cannot be foreclosed or forced to vacate your house because you “missed your mortgage payment.”
Margaret B. (Schenectady, NY)
Question: I’m planning on living a very long time. Can the lender take my home away if I outlive the loan?
Answer from Brian Cooper: No! The Reverse Mortgage loan does not become due until your home is sold, is no longer your primary residence or until the last borrower dies. You cannot be forced to sell your home to pay off the mortgage loan even if the loan balance grows to exceed the value of the property. HUD’s Federal Housing Administration guarantees that you’ll receive all the payments that are owed to you.
Jim H. (Oakdale, CT)
Question: Hi Brian. What if I own a condominium, not a single-family home?
Answer from Brian Cooper: You can still qualify for HUD’s Reverse Mortgage program. An eligible property must be your principal residence, but can be a single-family residence; a one to four unity dwelling with one unit occupied by the borrower; a manufactured home (some restrictions though); a unit in FHA-approved condominiums; or a Planned Unit Development (PUD). Your property must meet FHA minimum property standards, but you can fund repairs from the proceeds of your Reverse Mortgage.
Judith W.
Question: Can I apply if I didn’t buy my present house with FHA mortgage insurance?
Answer from Brian Cooper: Yes. While your property must meet FHA minimum standards, it doesn’t matter if you didn’t buy it with an FHA insured mortgage. Your new HUD Reverse Mortgage will be a new FHA insured mortgage loan.
Michael L. (New York, NY)
Question:
How do I know if I qualify for a Reverse Mortgage?
Answer from Brian Cooper: To be eligible for a HUD Reverse Mortgage, HUD’s Federal Housing Administration requires that you and your Spouse (or whoever is in title to the property) are homeowners age 62 years of age or older; have a low outstanding mortgage balance or own your home free and clear; and that you meet with a HUD-approved counseling agency to make sure you understand what a HUD Reverse Mortgage will mean for you.
Carl C.
Question: How long have Reverse Mortgages been around?
Answer from Brian Cooper: The Reverse Mortgage became a valuable and safe tool for senior Americans when the United States Congress authorized the Department of Housing and Urban Development (HUD) through the Federal Housing Administration (FHA) Home Equity Conversion Mortgage (HECM) in 1987. An additional Reverse Mortgage became available in 1996 when the Federal National Mortgage Association (FannieMae) created the Home Keeper Reverse Mortgage.
